REITs: Adjusting Earnings Estimates and Raising Price Targets for CUZ, HIW and VNO

Research evidence excerpt

REITs: Adjusting Earnings Estimates and Raising Price Targets for CUZ, HIW and VNO

Truist Securities

Equity Research Report June 26, 2026

REAL ESTATE INVESTMENT

TRUSTS: Office REITs REITs: Adjusting Earnings Estimates and

Raising Price Targets for CUZ, HIW and

Michael Lewis, CFA VNO

212-319-5659 What’s Incremental to Our View: We are increasing our 2027 normalized FFO Michael.R.Lewis@truist.com

estimates and significantly raising our 12-month price targets for Hold-rated CUZ, HIW

and VNO on more normalized P/FFO and P/NAV expectations as detailed in this note.

Alex Murphy

212-319-2173 Like most office REIT stocks, these three significantly underperformed to start this year

Alex.Murphy@truist.com and have rallied all the way back. Specifically, CUZ, HIW and VNO are up 34%, 39%

and 48%, respectively, over the past three months versus 11% for REITs overall – but

21 Page Document are still up only 13%, 13% and 14% year-to-date versus 10% for REITs.

Reasons for this report Three months ago, we noted “encouraging REIT office leasing volume and lower stock prices,” but we were hesitant to get more constructive on the stocks due to lackluster

✓ Adjusting Estimates and Price Targets cashflow, weak job growth, broad private credit concerns, the start of the war in Iran

contributing to higher inflation & interest rates, and the threat of AI to office-using

employment. In the few months since, job growth has improved a bit, private credit

concerns have taken a back seat, and most importantly continued healthy leasing

activity has led many investors to switch their view of AI from a job-killer to a driver of

additional office leasing in some markets. The impact will continue to be debated, but

AI does not appear to have triggered negative consequences for office leasing so far.